Amazon causes industry stir with plans for 'Prime Stylist' service
Amazon is testing out a 'Prime Stylist' service that has already caused established personal stylist companies, namely Stitch Fix, to see changes in their stock price.
Stitch Fix stock, up some 50% this year, was down 4.3% to $26 late morning Monday as KeyBanc Capital Markets analyst Edward Yruma relayed Amazon’s testing of a new personalised styling service, which looks to rival Stitch Fix, a digital clothing retailer.
In the note, Yruma said that Prime Stylist will use artificial intelligence and real-live personal stylists to provide curated wardrobe selections to users. According to the analyst, the move marks Amazon's continued pursuit of a competitive position against not just digital retailers, but also brick-and-mortar businesses.
"[Amazon] has been lacking in [apparel] curation/merchandising," Yruma said. "We think Amazon has recognized this and has improved photography and storytelling, and Prime Stylist can be another strong step to enhance its capabilities.”
Yruma has an Overweight rating and a $2,100 price target on Amazon’s stock, as well as an Overweight rating and $40 target on Stitch Fix.
Plans for Prime Stylist follow Amazon's launch of Prime Wardrobe last summer, a "try before you buy" service which allows Prime members to select, receive and try on apparel before purchase.
Prime Wardrobe is currently available to Prime members in the U.S., U.K. and Japan.
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